Suppose I received a cheque from our Debtors and can I transfer these cheque directly our creditors?
Please answer this question as soon as.
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Transfer of Cheque
Replies (8)
Quick Summary
How is it possible...?
Here the cheque write the name A then B can't use the cheque...!
Here the cheque write the name A then B can't use the cheque...!
Cheque Issued in the name of company ,Can not be transferred directly to creditors .
If not mentioned company's name then
No...
It's not correct / good...
It's not correct / good...
Yes you can through sign on the back side and the name of person to whom you want to transfer
Then How it will be accountable in books...??
If it's account payee and had to be so under 40A(3).
You can ask directly your debtor to issue cheque in your creditor party name. If he agrees then it's ok.
By doing, what purpose you seek to obtain ?
Keep transactions straight and identifiable instead of complicating.
You can ask directly your debtor to issue cheque in your creditor party name. If he agrees then it's ok.
By doing, what purpose you seek to obtain ?
Keep transactions straight and identifiable instead of complicating.
If the Cheque is Account payee then you cannot transfer the cheque directly to your creditor.
Further, if you saying the name of the Company is not mentioned- its an incomplete cheque(only name not mentioned) then you can name it with your creditor after taking consent of your debtor.
In the account just make a journal entry and adjust your creditor liab with debtor balance.
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